Fed Bank Bailout Totals $360B

WASHINGTON -- The Federal Reserve has provided a total of $360 billion in short-term loans to squeezed banks since December to help them overcome credit problems, The Associated Press reported.

The central bank on Tuesday announced the results of its most recent auction -the 10th since the program started in December, where commercial banks bid to get a slice of another $50 billion in the short-term loans, the AP reported.

In the latest auction, commercial banks paid an interest rate of 2.870 percent for the loans, the AP reported.

There were 83 bidders for the slice of the $50 billion in 28-day loans. The Fed received bids for $88.3 billion worth of the loans. The auction was conducted on Monday with the results released Tuesday, the AP reported.

-- NYSSCPA.org News Staff

Posted on 4/22/08